Interim
Joint Committee on Natural Resources and Environment

Minutes
of the<MeetNo1>2nd Meeting

of
the 2012 Interim

<MeetMDY1>July 12, 2012

Call to Order and Roll Call

The<MeetNo2>2nd meeting of the Interim Joint
Committee on Natural Resources and Environment was held on<Day>Thursday,<MeetMDY2>July
12, 2012, at<MeetTime>10:00 AM, at the Office of Mine Safety and Licensing in
Pikeville, Kentucky<Room>. Senator Brandon Smith, Chair, called the
meeting to order, and the secretary called the roll.

A quorum was established. After a motion and second, the
minutes of June 7, 2012 were approved. A moment of silence was held for former
Representative DeWayne Bunch who passed away on July 11, 2012.

Update from the Office of Mine Safety and Licensing on
injuries and accidents in Kentucky mines

After introduction of local dignitaries and officials, Mr.
Freddie Lewis, executive director of the Office of Mine Safety and Licensing
(OMSL) gave a presentation on Kentucky’s mine safety record over the past five
years. Mr. Lewis introduced Mr. Harold Sloane, division director of Inspections
in OMSL and Mr. Frank Reed, director of Training and Analysis.

Mr. Lewis described the organization structure of OMSL
stating there are 165 employees located in Frankfort and in the six district
offices throughout Kentucky. There are four major divisions in OMSL: Safety
Inspection and Licensing; Safety Analysis, Training and Certification; Accident
Investigation; and Mine Rescue. Mr. Lewis described the various functions
performed by those divisions beginning with mine rescue. There are 12 mine
rescue teams in the state that provide mine rescue service to coal miners.
Service on a mine rescue team is voluntary, and because mine rescue is
mandatory under federal law, the structure of the mine rescue teams in Kentucky
is vital to the continuance of the coal industry in the state.

OMSL’s Division of Safety Inspection and Licensing performs
inspections of both the 171 underground and 229 surface coal mines in Kentucky.
There are two surface and six underground inspections per year. Additionally,
underground mines will use two of the six inspections for electrical works in
the mine. In 2011, OMSL conducted 2,519 inspections of surface and underground
coal mines in Kentucky.

The Division of Safety Analysis, Training and Certifications
has recently established a new program to train and provide mine safety
analysts to mines with new foremen or new mine crews. This effort is to blunt
bad safety practices before the practices are instituted in workplace. OMSL is
making an effort to be proactive and serve as an advocate the coal mining
industry by encouraging better safety in mines rather than penalizing after an
inspection. The idea is that creating partnerships with the industry will lead
to an embrace of safe mine work conditions. In 2011 mine safety analysts conducted
24,286 job safety observations and corrected 2,375 unsafe acts. Many inspectors
are also mine safety analysts, but mine safety analysts watch and offer
corrections to working conduct whereas an inspector will not. Kentucky is the
only state with a mine analysts program. The Division of Safety Analysis,
Training and Certifications also trains, tests, and certifies for 18 different
mine certifications such as foreman, jobbers, blasters. Kentucky OMSL trained
and tested 38,648 miners and issued roughly 20,000 certifications to miners in
2011.

The Division of Accident Investigation has three accident
investigators that are on call 24 hours a day in case of a serious mine
accident or fatality occurs. Investigators now send emergency bulletins out
after a serious accident or fatality that describes how that situation came
about and could have been prevented. It is a way of extending the philosophy of
proactive mine safety to the Division of Accident Investigation.

Mr. Lewis provided data on accidents and fatalities in
Kentucky from 2007 to 2011 and further delineated the data for both surface and
underground mines. There were a total of 20 serious accidents and 14 deaths at
underground mines between 2007 and 2011 in Kentucky. Surface mines experienced six
serious accidents and 14 deaths during that same period. In 2012, there have
been two fatalities, and the last fatality that occurred is under
investigation.

In response to a question about what proportion of the
accidents are drug related, Mr. Lewis replied that he did not know the answer
and deferred to Mr. Greg Goins, mine accident investigator. Mr. Goins explained
that mine deaths will require a toxicology report. However, the results do not
express whether drugs were a contributing factor in the death of the miner.
Accident investigators do not give their opinion on the role of drugs in the
mine accident unless called to testify in a court proceeding.

Mr. Lewis, in response to another question about the
difference between serious accidents and fatalities, explained that serious
accidents involve a miner that is injured but not killed. Examples of serious
accidents include highwall failures, berm collapse, equipment related incidents
like rollovers. There are many situations that constitute serious accidents.

In response to a question about suboxone treatment for opioid
addictions could be considered an impairment situation to remove the miner from
the work line, Mr. Lewis stated that the problem with suboxone, like methadone,
is when the miner is abusing the substance rather than taking it at prescribed
therapeutic levels. In response to a legislator commenting that coal companies
can address these situations through company drug policies, Mr. Lewis
concurred.

In response to a question about the funding for OMSL, Mr.
Lewis expressed that funding is tight. Mine rescue is expensive and Kentucky
needs to update all apparatuses used for mine rescue. When the equipment is not
updated, the Mine Safety and Health Administration (MSHA) can inspect
Kentucky’s offices for compliance. If OMSL’s program is found out of
compliance, then MSHA can shut Kentucky’s program down. A shutdown of
Kentucky’s program would cause a cascade throughout the industry. Federal law
requires travel to all mines, even abandoned mines. This is a costly feature of
federal law.

In response to a question about how Kentucky markets the
image of miners using thick coal seams, Mr. Lewis remarked that there are many
thin coal seams in Kentucky, and those images can be used, too.

In response to a question about employees in each division
of OMSL and the collection of fines from coal companies, Mr. Lewis replied
there are three accident investigators, 35 mine analysts, and 88 mine
inspectors. Mine penalties have a good collection record in Kentucky; however,
the penalties being reported in the press recently are federal. Kentucky OMSL
does not have the authority to collect fines and penalties for MSHA.

In response to a remark about the complexity of a mine inspection
and the recklessness of increasing inspections without understanding the impact
on OMSL and coal mine companies, Mr. Lewis remarked that there are inspectors
on every shift. Complete inspections can take a month for some mines. OMSL is
meeting the inspection requirements set in statute. With mine closures due to
economic downturns, some of the pressure to stay up-to-date on inspections is
lessened. It still costs the agency as much money to conduct inspections.

In response to a question about analysts being inspectors
simultaneously, Mr. Lewis stated that analysts can inspect. But those duties
are not being performed simultaneously. OMSL does not want inspectors punishing
industry. Safety has to be sold as an idea to industry in order for industry to
embrace good, safe practices.

Mr. Lewis then described the remaining activities of the
day. The committee would view a rescue station in the OMSL, Pikeville District
office, and then travel to Bob Amos Park to watch the mine safety competition.

After a motion and a second, the committee adjourned at
11:15 PM (EST).